Filipino workers’ paid leave among lowest globally, study says

Filipino workers are entitled to some of the stingiest paid time off in the world, according to a new report by UK-based payroll and HR software provider Moorepay, putting the country behind most of its regional peers in guaranteeing rest days and vacation.

The study, which compared statutory leave entitlements across 187 economies, ranked the Philippines among the lowest globally. While Moorepay said that every country follows its own pattern when it comes to basic paid leave, labor advocates have warned that the lack of generous leave entitlements risks compounding burnout.

When counting both mandated vacation and public holidays, Filipino employees receive just 16 days of leave a year—the fourth-lowest total globally. Only the United States, which guarantees none, fared worse, followed by Japan with 10 days and Guyana with 12.

Within Southeast Asia, the Philippines lags behind Brunei (18), Thailand (19), Malaysia (19), Singapore (19), Vietnam (23), Indonesia (29), Myanmar (32) and Cambodia (40).

Annual leave

On annual leave alone, the Philippines guarantees just five days, the second-lowest in the world after the United States.

At the other end of the spectrum, Yemen offers the most generous statutory leave: 46 days, combining 30 days of annual vacation with 16 public holidays.

“Employers can use this knowledge to ensure their business stays competitive in the recruitment market. The amount of holidays you give as an employer is a major benefit for your employees,” said Michelle Hobson, HR services director at Moorepay.

Top talent

“By offering more than the minimum statutory leave, or offering more than the average pay package for annual leave, you can recruit and retain top talent,” Hobson added.

Looking ahead, Hobson said scant entitlements put extra pressure on employers and HR professionals to decide what their approach to annual leave is.

Not taking breaks, she noted, can lead to employees being stressed and burned out at work. This results in lower productivity and a higher risk of illness and absenteeism.

Paid time off, meanwhile, allows for necessary recuperation and restoring mental resilience, leading to happier employees, fewer sick days and higher levels of productivity.

Source: Inquirer

Human performance in focus: What business leaders in the Philippines need to know

Business leaders in the Philippines are currently facing a critical gap. While most recognize the urgent need to adapt to the changing world of work, only a few believe that their organizations are responding effectively. The cost of inaction? A potential decline in productivity, trust, innovation and long-term resilience.

This insight comes from Deloitte’s 2025 Global Human Capital Trends study entitled “Unleashing Human Performance in a Boundaryless World,” which drew responses from over 13,000 voices across 93 countries, including 2,000 executives. Each year, the report offers a pulse check on how organizations are evolving and this year’s findings challenge leaders to rethink how they unlock human potential amid rising complexity. 

The modern workplace isn’t about choosing sides — it’s about balancing tensions: automation vs augmentation, agility vs stability and control vs empowerment. These aren’t problems to solve, but they’re dynamics to design around. True human performance doesn’t ask leaders to choose between business and people, it asks them to build systems that serve both.

Deloitte has identified three dimensions of human performance: work, workforce and organization and culture. These three elements present key areas where organizations must make strategic choices to unlock both human and business outcomes. 

The study presented the first dimension as rethinking work. Leaders around the world have overwhelmingly agreed that balancing stability and agility — or what Deloitte calls “stagility” — is essential in their operations. However, the challenges in achieving this are coming from the inside and not the outside. Internal blockers like outdated structures and varying leadership perspectives have hindered companies from focusing on what creates value rather than what just fills time. 

To move forward, businesses must shift from task-based roles to outcome-driven work, meaning their focus should be on empowering employees to redesign their workflows using AI and embracing flexible, skill-based models that adapt to change.

Simplification is another blind spot. Globally, 41 percent of work time is spent on low-value tasks, but the rise of new technologies poses opportunities to eliminate low-value tasks. Tech and data can be used to identify inefficiencies, and redesign processes with employee input. The “slack” or freed up time from the integration of tech to systems should be embraced as this is not a waste but a space for creativity, which could be a game-changer for the organization.

The second dimension is evolving the workforce, coming from findings that highlight the widening of the experience gap. Filipino companies struggle to find experienced hires while new workers struggle to gain experience — especially as AI takes over many entry-level tasks. This leads to a development vacuum or the growing difference between the skills and experience organizations need and what workers actually have.

The fix isn’t just more training, it’s rethinking how experiences should be built.

Apprenticeships, hands-on learning and AI-powered development tools can help bridge the gap. Work should be designed with career paths in mind, not just immediate outputs.

There’s also the digital employee value proposition (EVP) or the concept that tackles why and how people choose their employers in the AI era. As the technology transforms work, employees want more meaning, clarity, and support. Transparency about AI’s role and designing EVP strategies that help people thrive alongside machines — not compete with them — is essential.

Tech investment is another area where intent and impact don’t align. In the Philippines, only 4 percent of leaders believe their tech investments are delivering human value and it’s high time to redefine success metrics to include well-being, engagement and growth, not just efficiency.

Finally, the third identified dimension is rebuilding organizations for performance. Motivation is personal. Data can help decode what drives each employee — whether it’s recognition, autonomy, or purpose — and tailor experiences for them accordingly.

Performance management also needs a reset. Workers don’t trust traditional systems to measure their true value and there is a necessity to move from rigid reviews to daily coaching, meaningful feedback and enabling conditions for success.

The manager’s role is ripe for reinvention. With AI handling more admin and analysis, managers must focus on developing people, solving problems and guiding transformation. They need to be equipped not just to oversee tasks, but to coach, collaborate and catalyze agility. These are not just soft skills; these are hard currency in today’s world.

Considering these dimensions when forming a framework for one’s organization aids in managing the tensions between short-term results and long-term value. They drive leaders towards a reimagined workplace, one where performance management isn’t just traditional, but geared towards implementing efficiency-boosting practices directly into daily work life. 

The path forward lies in rebalancing work, workforce and workplace, not by solving tensions, but by embracing them. When we do, we don’t just optimize performance — we unleash human potential.

In a boundaryless world, that may be the most powerful advantage of all. 

Source: Manila Times

Expanding financial access for every Filipino

Economic uncertainties have pushed more Filipinos to consider financial safety nets, yet achieving long-term security remains a challenge.

A 2024 industry report found that 43% of Filipinos are seeking passive income sources, 39% are prioritizing emergency savings, and 32% are focused on financial freedom after retirement. However, major hurdles remain, with rising healthcare costs at 82%, inflation at 81%, and concerns over economic slowdown and recession at 78% weighing heavily on financial decisions.

Despite the availability of banking services, many Filipinos still prefer keeping their savings in traditional piggy banks, bamboo containers, or old jars. A study published by PANTAO: An International Journal of the Humanities and Social Sciences noted that distrust in banks stems from fears of bankruptcy or inflation eroding their savings.

However, keeping cash at home poses greater risks, including theft, damage, or misplacement.

The study emphasized that banks serve not only as safekeeping institutions but also as tools for emergency preparedness. Experts recommend maintaining at least three to six months’ worth of living expenses in a secure, accessible account to prevent unnecessary debt during financial emergencies. When emergencies arise, those without savings often turn to quick loans, credit cards, or informal borrowing, creating a cycle where a large portion of income goes toward debt repayment rather than wealth-building.

Risk management is another overlooked aspect of personal finance. Many Filipinos see insurance as an unnecessary expense rather than a safeguard against life’s uncertainties. Life insurance, for example, is often dismissed as a luxury for the wealthy, while non-life insurance is viewed as an added cost rather than protection for assets.

While the country’s insurance penetration improved by 0.06 percentage points in the fourth quarter of 2024 to 1.67%, it remains relatively low compared to the global average of 2.9% and 2.2% in emerging Asia.

According to a JP Morgan report, life insurance with cash value can be a valuable financial tool for asset diversification. Permanent life insurance policies, for instance, include savings components that can grow over time, offering additional financial security.

Investment as wealth-building tool

According to the Bangko Sentral ng Pilipinas (BSP), saving is essential for financial security as it provides readily available funds for emergencies and short-term needs. However, these accounts offer minimal returns and often fail to keep pace with inflation.

Investing, on the other hand, involves purchasing assets that can appreciate over time, with the potential to generate higher returns. The BSP stated that income is a person’s most powerful wealth-building tool. Without strategic investing, hard-earned money may not reach its full potential.

While investments carry risks, they also provide opportunities for financial growth, helping Filipinos move beyond mere survival toward true financial independence. Middle-income Filipinos are exploring investment opportunities to grow their wealth, including stocks, mutual funds, real estate, and digital assets.

Such investors are typically investing to prioritize specific life objectives such as homeownership, education funding, or retirement planning. For them, the goal is not just wealth accumulation but securing a future that can withstand economic uncertainties.

Beyond financial gains, focusing on long-term objectives means investors are less likely to make impulsive decisions driven by short-term market fluctuations. This method helps to break away from the traditional approach of a one-size-fits-all investment solution.

However, 75% of Filipinos still do not invest, according to the BSP Financial Inclusion Survey. Many hesitate to enter the investment space due to a lack of knowledge, fear of risk, or unfamiliarity with financial products. The central bank also reported that the lack of financial literacy discourages people from considering investments, as many view them as risky or exclusive to the wealthy.

Journey towards financial inclusion

The BSP said that many Filipinos remain outside the formal financial system, unable to maximize opportunities that could improve their financial standing.

While women in the Philippines have higher financial inclusion rates than men, large segments of the population still struggle to access financial services. Those most affected include low-income earners, senior citizens, migrant workers and their families, persons with disabilities, indigenous peoples, and forcibly displaced persons.

Micro, small, and medium enterprises (MSMEs), along with agriculture-based businesses, also remain largely underserved. These sectors contribute significantly to employment and economic activity yet receive only a small fraction of total bank loans.

Smallholder farmers, fisherfolk, and informal workers, in particular, face limited access to financing that constrain their ability to expand and improve their livelihoods.

The transition to digital transactions has also introduced new challenges, especially in rural areas where internet connectivity is inconsistent and financial literacy is lower. Many Filipinos remain hesitant to fully embrace digital banking due to concerns about affordability, security, and fraud risks.

In response, the central bank is intensifying efforts to educate Filipinos on key financial concepts through its Economic and Financial Learning Office. The Economic and Financial Learning Program regularly holds activities designed to improve public understanding of essential financial matters.

Recognizing the challenges MSMEs and the agriculture sector face in securing financing, the BSP is promoting alternative lending solutions through Agricultural Value Chain Financing model, which connects agribusiness players with banks to facilitate lending opportunities. Through Circular No. 908, the central bank encourages banks to explore value chain financing as a sustainable way to support the agriculture industry.

In addition, the BSP continues to promote the Credit Surety Fund, which provides collateral substitutes to MSMEs, enabling them to access bank loans. Under the Credit Surety Fund (CSF) Cooperative Act, the central bank works closely with cooperatives and the Cooperative Development Authority to strengthen CSFs in various communities.

Meanwhile, the Department of Finance (DoF) has called on the insurance industry to expand market penetration and position insurance as a mainstream financial instrument and basic necessity for Filipinos.

In a statement, Finance Secretary Ralph G. Recto emphasized that insurance is a powerful tool for poverty reduction and long-term financial security, more than just a safety net.

“Risk is a significant driver of poverty, and adequate insurance coverage is among the powerful tools for mitigating this challenge. Therefore, the life insurance industry [must] hold key positions in winning our battle against poverty,” said Mr. Recto.

The Finance secretary also urged industry players to embrace digital innovation, simplify policies, and develop customer-centric, cost-effective solutions. That way, insurance serves as a comprehensive financial product that integrates protection, savings, and investment benefits tailored to different life stages.

Source: Business World